Jim Cramer reacts to Apple and Amazon’s rough earnings reports
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CNBC Jim CramerWere disappointed by the quarterly results of AppleAnd AmazonThis indicates that even though the company’s problems were significant, they did not change the overall investment thesis.
After-hours trading saw shares of Amazon and Apple fall more than 3 percent as investors digested quarterly results.
Apple earnings per share were in line with Wall Street estimates, but the iPhone maker’s sales of $83.36 billion were lighter than the expected $84.85 billion.
Amazon missed on both the top and bottom linesWhile releasing weaker than expected fourth-quarter guidance,
Below are some examples “Mad Money”The host takes on the numbers
Apple
Cramer stated that “with Apple, the issues are clearly temporary,” and noted that CEO Tim CookHe explained to him that supply shortages cost the company approximately $6 billion per quarter.
Cook claimed that Apple’s semiconductor supply is improving, but Cramer stated that Cramer was concerned about the company’s ability to satisfy demand in this quarter.
My position on Apple is: Buy it. Don’t trade. It hasn’t been changed. Cramer explained that shortages of supply will soon be fixed, although we aren’t sure when. Cramer stated, “If there was demand [slowdowns]It would make for a very interesting conversation.
Amazon
Cramer stated that the “problems here” are only temporary, similar to Apple’s. He also highlighted the multiple obstacles Amazon faced in e-commerce, such as shortages and rising transport costs.
Cramer stated that “on top of this their retail business is slowing down, in part due to some very difficult comparisons.” The management’s direction was not great. But, Amazon Web Services is on fire.”
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